Only 3.2k units delivered, production of 2020 Proton X50 badly affected by CMCO

Production of Malaysia's hottest B-segment SUV, the 2020 Proton X50 has been badly affected by the Conditional Movement Control Order (CMCO), with a large majority of customers still waiting to take delivery of the car since it was first open for bookings on 16-September, 2020. 

Proton Holdings Bhd's Chief Executive Officer, Roslan Abdullah, told The Malaysian Reserve that the delays were inevitable as its manufacturing side relies on the availability of parts supplied by vendors, who themselves are struggling amidst the current CMCO procedures. 

"We have about 60 local vendors for the X50, of which one had to shut down operations as a Covid-19 cluster was detected in the area. This is affecting the supply chain and we cannot simply make substitutes as we need to maintain the quality promised to the customers," Roslan said.

He added that some imported parts are also behind schedule due to the closure of international borders - causing further disruptions on the production lines.

A big part of this is due to the two-month nationwide MCO in March and April this year, halting manufacturing operations of the automotive sector. Though the government then eased restrictions in May and June, the current round of CMCO put Klang Valley-based manufacturers to the test again.

The current CMCO is expected to end on 14-January 2021.

"We are working closely with our business partners, vendors and dealers to ensure they can still operate smoothly during this challenging period," said Roslan who is also the carmaker's Vice President of Sales and Marketing.

3,200 units of the Proton X50 delivered so far

Roslan also mentioned that outstanding bookings for the X50 now stand at 30,000 units, which is half of the total outstanding order across all Proton models. "To date, we have delivered 3,200 units of the X50 and are working hard to meet our customers' expectations to receive their cars as soon as possible," he said.

For those who haven't received their cars, Roslan said that Proton is looking to deliver existing orders within the next two months. That said, he mentioned that new bookings would take up to three four months to be delivered. 

Roslan also apologised to customers who have been waiting months for the car. "Proton intially only committed to register 4,000 units of the SUV before the year ended. Despite the encouraging sentiment we received before the launch, we did not foresee people queuing at our showrooms to book 5,000 units within just a couple of days. It was so unexpected. And for that, I apologise to our customers," he said.

SST-exemption for new cars extended till 30-June 2021

Seeing that the government has since extended the sales tax exemption until 30-June 2021, Roslan said the ball is now in Proton's court to make those outstanding deliveries. He mentioned that the carmarker is now "micromanaging" its business partners - from vendors to distributors. 

"We are closely monitoring this with a daily report on how every vendor and dealers is doing, so we can provide any necessary assistance," said Roslan.